More Talk from Feds - Jackson Hole Confab
Another government shutdown looming?
Hot Dogs, get Your Hot Dogs!
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- US Rates on the move
- Jackson Hole Confab this week - Powell talking Friday
- Another government shutdown looming? (September)
- Russian Moon Landing - Not so good
- Hot Dog Wars
- Schmuchalucks
Market Update
- China freaking out investors - not showing big support
- The S&P 500 index fell 2.1% last week, extending the market benchmark's losing streak to a third consecutive week as bond yields climbed to highs not seen in years.
- The drop came as Treasury yields rose to multi-year highs; the 10-year Treasury yield hit a 16-year high and the 30-year Treasury yield reached a 12-year high
- The SPAC is back? IPO opps? Parts of the market still yearning for risk (casino vs investing)
- Moody's gets into the fray - cuts bank ratings
Yields - Moving
- 10-Year tops 4.35%++
- Long-term on a losing streak
--- Meaning: High rates for longer being accepted by markets - also spread may narrow on curve
- Minutes released this week from the latest Federal Open Market Committee meeting indicated most committee members saw "significant upside risks" to inflation, which could prompt the central bank to further raise its benchmark lending rate.
Long vs. Short
10-Year Pop!
Moody's
- Moody's cut credit ratings of several small to mid-sized U.S. banks on Monday and said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength will likely be tested by funding risks and weaker profitability.
- Moody's cut the ratings of 10 banks by one notch and placed six banking giants, including Bank of New York Mellon, US Bancorp State Street and Truist Financial on review for potential downgrades.
Inflation - Rice
- Rice prices surged to their highest in almost 12 years, after India's rice export ban and adverse weather conditions dented production and supplies of Asia's primary staple food, according to the UN's food agency.
Tesla
- Tesla shares (TSLA) led the consumer discretionary sector's drop, falling 11% last week as reports said the electric vehicle maker reduced the prices for its premium Model S and Model X vehicles in China, its second price cut in the country this week.
- The company also launched two cheaper versions of its Model S sedan and Model X sports utility vehicle in the US.
NVDA
- Earnings out on 8/23 - a good bit of optimism going into the print
- Recent upgrade to the stock - HSBC upped their tgt on NVIDIA (NVDA) to $780 from $600
Odd Tech
- Earnings AFTER the close on Friday (last)
--- Worried investors - why would a company do that? (Friday Night Dump?)
- - - Stock is ramping higher on the news....
- Palo Alto Networks — The security software vendor soared 12.5% following an earning's beat after the Friday market close. Fiscal fourth quarter adjusted earnings per share came in at $1.44, topping the $1.28 expected from analysts polled by Refinitiv. Revenue, however, fell short
Earnings Roundup
- Fabrinet surged 21% after its fiscal fourth-quarter results late Monday topped analysts' estimates. The advanced manufacturing services company posted non-GAAP earnings of $1.86 per share, greater than the $1.80 earnings per share expected
- Dicks Sporting Goods shares plunged nearly 20% after the retailer reported an earnings miss and cut guidance for the year, due in part to an increase in retail theft
----- The tell ? Dicks announced management layoff and cost savings a day before the earnings
- Macy's slid about 1.6% after reporting second-quarter earnings.
Another government shutdown looming?
Hot Dogs, get Your Hot Dogs!
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- US Rates on the move
- Jackson Hole Confab this week - Powell talking Friday
- Another government shutdown looming? (September)
- Russian Moon Landing - Not so good
- Hot Dog Wars
- Schmuchalucks
Market Update
- China freaking out investors - not showing big support
- The S&P 500 index fell 2.1% last week, extending the market benchmark's losing streak to a third consecutive week as bond yields climbed to highs not seen in years.
- The drop came as Treasury yields rose to multi-year highs; the 10-year Treasury yield hit a 16-year high and the 30-year Treasury yield reached a 12-year high
- The SPAC is back? IPO opps? Parts of the market still yearning for risk (casino vs investing)
- Moody's gets into the fray - cuts bank ratings
Yields - Moving
- 10-Year tops 4.35%++
- Long-term on a losing streak
--- Meaning: High rates for longer being accepted by markets - also spread may narrow on curve
- Minutes released this week from the latest Federal Open Market Committee meeting indicated most committee members saw "significant upside risks" to inflation, which could prompt the central bank to further raise its benchmark lending rate.
Long vs. Short
10-Year Pop!
Moody's
- Moody's cut credit ratings of several small to mid-sized U.S. banks on Monday and said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength will likely be tested by funding risks and weaker profitability.
- Moody's cut the ratings of 10 banks by one notch and placed six banking giants, including Bank of New York Mellon, US Bancorp State Street and Truist Financial on review for potential downgrades.
Inflation - Rice
- Rice prices surged to their highest in almost 12 years, after India's rice export ban and adverse weather conditions dented production and supplies of Asia's primary staple food, according to the UN's food agency.
Tesla
- Tesla shares (TSLA) led the consumer discretionary sector's drop, falling 11% last week as reports said the electric vehicle maker reduced the prices for its premium Model S and Model X vehicles in China, its second price cut in the country this week.
- The company also launched two cheaper versions of its Model S sedan and Model X sports utility vehicle in the US.
NVDA
- Earnings out on 8/23 - a good bit of optimism going into the print
- Recent upgrade to the stock - HSBC upped their tgt on NVIDIA (NVDA) to $780 from $600
Odd Tech
- Earnings AFTER the close on Friday (last)
--- Worried investors - why would a company do that? (Friday Night Dump?)
- - - Stock is ramping higher on the news....
- Palo Alto Networks — The security software vendor soared 12.5% following an earning's beat after the Friday market close. Fiscal fourth quarter adjusted earnings per share came in at $1.44, topping the $1.28 expected from analysts polled by Refinitiv. Revenue, however, fell short
Earnings Roundup
- Fabrinet surged 21% after its fiscal fourth-quarter results late Monday topped analysts' estimates. The advanced manufacturing services company posted non-GAAP earnings of $1.86 per share, greater than the $1.80 earnings per share expected
- Dicks Sporting Goods shares plunged nearly 20% after the retailer reported an earnings miss and cut guidance for the year, due in part to an increase in retail theft
----- The tell ? Dicks announced management layoff and cost savings a day before the earnings
- Macy's slid about 1.6% after reporting second-quarter earnings.
Activity